European stock markets opened lower on Friday after the ECB’s interest rate decision. The broad Stoxx 600 index of European stock exchanges fell by 0.51 percent after the stock markets opened, and the Euro Stoxx 50 index of large companies by 0.36 percent.
The central bank did not lower the euro area interest rate, and neither did the governor Christine Lagarde gave hints about interest rate reductions. Before the interest rate meeting in July, the market priced in two interest rate cuts for the rest of the year.
“The question of what we will do in September is completely open,” Lagarde stated at her press conference.
After Lagarde’s comments, the probability of an interest rate cut at the ECB’s September meeting fell to around 80 percent, while before the meeting it was more than 90 percent.
Uncertainty is still reflected in the market on Friday.
Frankfurt’s DAX index opened down 0.57 percent. London’s FTSE 100 index was down 0.65 percent after the stock markets opened.
A semiconductor company that has fallen due to the growing tensions between the United States and China, and especially the planned restrictions on the chip trade ASML continued to decline on Friday. The company’s share was slightly down by 0.75 percent after the stock markets opened, which is more moderate compared to the beginning of the week. During this week, ASML’s price has already fallen by more than 16 percent from 998.70 euros to 832.00 euros.
Source: www.arvopaperi.fi
